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Financing for Geothermal Heat Pumps

Sustainable Living Bryson Buehrer December 10 3 minutes reading time

Many homeowners have the desire to reduce their energy usage and work towards a cleaner, more sustainable home, and geothermal is the perfect option to check off those boxes. According to the Environmental Protection Agency, geothermal stands as the "most energy-efficient, environmentally clean, and cost-effective" solution for keeping your home comfortable. With all those benefits, it has been historically difficult to get a solid, homeowner-focused financing plan for this technology. Now, you can install a geothermal heat pump for no money down, and can actually save more on utilities than your monthly payment costs. Let's see how!


Why and How To Finance Your Geothermal Heating and Cooling System

Why Would You Want to Finance a Geothermal Heat Pump?

Just like buying a new car, there aren't many people who can pay cash for a brand new system upon installation. This up front cost is often the sole barrier to entry for many homeowners, so one can see where financing becomes a preferable option for those wanting to install geothermal. Enertech's loan program is a little different than most home equipment loans, in that the loan is secured by the installed system as opposed to the equity in your house. This means that you don't need any home equity to get a geothermal heat pump for zero money down!

What Sets This Loan Apart From Other Options?

For our financing program, we partnered with a credit union that specializes in energy-efficient and renewable home technologies. They offer competitive and flexible financing options for a variety of projects and products. We found their expertise valuable as we began to implement this program, as we wanted something that was homeowner-focused. With this program, you'll have access to:

  • Loans of up to $70,000
  • Competitively low, fixed interest rates
  • Long-term, short-term, and combo loans available
  • Automatic electronic payments without any prepayment fees

How Does This Actually Work In Real Life?

There isn't a standard for the cost of an installed geothermal system, but we can use some typical values to predict the type of savings and costs a homeowner could plan for. While modern new construction homes tend to be larger (2,400 ft2), the average home size of all homes in the states is closer to 2,000 ft2. At this size, we'll use an installed system cost of $24,000, and assuming that the homeowner is approved for a 15-year loan. 

After the 26% U.S. Federal Tax Credit, the installed cost drops to $17,760 for this high-efficiency system. We'll pit this number against a relatively low-cost, middle-efficiency furnace and air conditioner combo, coming in at $11,000. Already, we're only at a $6,760 difference. When we factor in our monthly heating and cooling costs, coupled with the financing payments for each system, the "pricier" geothermal solution still comes in around $73 cheaper each month compared to the traditional system. If money talks, then this comparison is screaming. If you're wanting a further, more in-depth breakdown of the benefits, process, and frequent questions associated with our geothermal loan, get in contact with our financing experts today!

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Bryson Buehrer
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